tag:www.econsultancy.com,2008:/topics/digital-strategy Latest Digital Strategy content from Econsultancy 2016-12-05T07:43:04+00:00 tag:www.econsultancy.com,2008:TrainingDate/3120 2016-12-05T07:43:04+00:00 2016-12-05T07:43:04+00:00 Econsultancy's Certificate in Digital Marketing & Google AdWords Qualified Individual Certification **HRDF Claimable** - Malaysia <h3><strong>Course Details</strong></h3> <p>Econsultancy and ClickAcademy Asia are proud to launch the first world-class Certificate in Digital Marketing programme in Malaysia catering to senior managers and marketing professionals who want to understand digital marketing effectively in the shortest time possible. Participants who complete the programme requirement will be awarded the <strong>Econsultancy's Certificate in Digital Marketing</strong> and <strong>Google AdWords Qualified Individual</strong> <strong>Certificate</strong>.</p> <p style="font-weight: normal;">This is a part-time programme with 64 contact hours (total 8 days) spread over 8 weeks. Participants will only be certified after passing the Google AdWords exams and the digital marketing project, and complete at least 52 contact hours. </p> <p style="font-weight: normal;">The part-time programme covers topics ranging from the overview of digital marketing, customer acquisition channels to social media marketing.</p> <p>A special early bird rate of RM10,000/pax is applicable for participants who register one month before course date. (6% GST applicable)</p> <p>For more information and to register, please click <a href="http://www.clickacademyasia.com/classgroup/econsultancys-certificate-in-digital-marketing-google-adwords-certification-my/?id_class=868&amp;utm_source=econsultancy&amp;utm_medium=website&amp;utm_campaign=doublecert-my-aug2016" target="_blank">here</a> <a href="http://www.clickacademyasia.com/training/digital-marketing/certificate-in-digital-marketing"><br></a></p> <h4>For any queries, please call +65 6653 1911 or email <strong><a href="mailto:apac@econsultancy.com" target="_self">apac@econsultancy.com</a></strong> </h4> tag:www.econsultancy.com,2008:BlogPost/68545 2016-12-02T14:27:26+00:00 2016-12-02T14:27:26+00:00 Five ways subscription box services can increase customer retention Nikki Gilliland <p><img src="https://assets.econsultancy.com/images/0008/1637/Customer_retention.JPG" alt="" width="650" height="289"></p> <p>So, how can subscription box services improve retention in the long-term?</p> <p>Here are five ways, as well as a few examples of the techniques in practice.</p> <h3>Offers for loyal customers</h3> <p>Most subscription services entice new users with delivery deals or a lower price for the first three months, and while this remains an effective acquisition strategy, an absence of incentives after this point is likely to be a big reason many jump ship.</p> <p>It’s no coincidence that people tend to cancel after four months – soon after most early offers expire. </p> <p>As a result, there needs to be more of a focus on offers built on loyalty.</p> <p><a href="https://econsultancy.com/blog/68525-how-birchbox-and-trendyol-approach-data-and-personalisation/" target="_blank">Birchbox</a> is one brand that delivers this, using its points program to drive retention. </p> <p>Customers can earn points with each box delivered, as well as when they review samples online. In turn, these can be traded for full sized products - a great incentive to stay signed up.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Finally used my <a href="https://twitter.com/hashtag/birchbox?src=hash">#birchbox</a> points and grabbed this <a href="https://twitter.com/hashtag/benefit?src=hash">#benefit</a> set <a href="https://twitter.com/hashtag/fotd?src=hash">#fotd</a> <a href="https://twitter.com/hashtag/instagram?src=hash">#instagram</a> <a href="https://t.co/yUCb3XLnSE">pic.twitter.com/yUCb3XLnSE</a></p> — LittleMissBeautyBox (@LMbeautyboxes) <a href="https://twitter.com/LMbeautyboxes/status/787941158861275136">October 17, 2016</a> </blockquote> <h3>Options to personalise content</h3> <p>Shorr’s survey found that one in five customers cancel a subscription service because they don’t like the products they receive.</p> <p>One way to combat this is by allowing people to tailor boxes to suit their own tastes. </p> <p>Graze does this with its choice of snack boxes, allowing customers to choose between ‘variety’, ‘light’ or ‘protein’. </p> <p><img src="https://assets.econsultancy.com/images/0008/1638/Graze_boxes.JPG" alt="" width="760" height="455"></p> <p>It also tells consumers about the snacks that are available, listing the nutritional values on its website.</p> <p><img src="https://assets.econsultancy.com/images/0008/1639/Graze_boxes_choice.JPG" alt="" width="600" height="603"></p> <p>While this tactic could negate the ‘surprise’ element that some customers enjoy, there are ways to get around it, such as asking about broad personal preferences and tastes.</p> <p>This could still deliver on the element of surprise, but ensure there is less chance of disappointment. </p> <h3>Flexible plans</h3> <p>Consumers might be reluctant about signing up to a subscription box service because of concerns over difficult cancellations in future.</p> <p>So while many brands might prefer to bury this information, being transparent and flexible on this issue could help to increase levels of trust.</p> <p>Dollar Shave Club is well-known for its personal, easy-going and <a href="https://econsultancy.com/blog/67434-four-brands-with-a-brilliantly-funny-tone-of-voice/" target="_blank">humorous tone of voice</a>, and this extends to how it reassures customers.</p> <p>Using ‘All reward, no risk” as its tagline, it’s encouraging from the start. </p> <p>Likewise, this kind of copy is littered throughout its website, reassuring customers that there are no commitments involved.</p> <p><img src="https://assets.econsultancy.com/images/0008/1640/Cancel_anytime.JPG" alt="" width="358" height="430"></p> <p>Pact Coffee takes this one step further by providing a number of flexible options around frequency and delivery.</p> <p><img src="https://assets.econsultancy.com/images/0008/1650/Pact.JPG" alt="" width="750" height="502"></p> <p>Allowing customers to pause or cancel orders at any time - it gives them the confidence that they are entirely in control.</p> <p>Likewise, the flower subscription service, Bloom &amp; Wild, uses its app to reflect the brand’s flexible approach.</p> <p><img src="https://assets.econsultancy.com/images/0008/1641/Bloom___Wild_app.JPG" alt="" width="780" height="268"></p> <p>As well as allowing users to keep track of orders, it also sends out reminders and special offers – similarly useful tactics for keeping customers happy and engaged.</p> <h3>Custom packaging</h3> <p>Shorr’s survey found that 76% of consumers would be very likely to notice custom packaging versus standard brown paper boxes.</p> <p>One in three have also shared an image on social media to show off a box’s packaging.</p> <p><img src="https://assets.econsultancy.com/images/0008/1646/Custom_packaging.JPG" alt="" width="660" height="307"></p> <p>So, along with the added bonus of inspiring <a href="https://econsultancy.com/blog/67547-10-excellent-examples-of-user-generated-content-in-marketing-campaigns/" target="_blank">user generated content</a>, unique or custom packing is also likely to further a positive response. </p> <p>Not Another Bill – a subscription service that sends out surprise gifts – is a great example of this.</p> <p>Reflecting the brand's premium nature, the box acts as an extension of the overall experience. </p> <p><img src="https://assets.econsultancy.com/images/0008/1647/Not_another_bill.JPG" alt="" width="750" height="446"></p> <p>Consequently, customers are often quick to shout about it on social.</p> <h3>Additional value through content or education</h3> <p>Alongside monetary incentives, customers are more likely to renew their subscription if they are receiving something of additional value.</p> <p>Wine subscription box service, Sip and Learn, uses education.</p> <p>Essentially, the longer a customer is subscribed for – the more they will learn.</p> <p>By using this as the basis for its business model, it means customers are unlikely to cancel before they have reached the end of the 12-box program.</p> <p><img src="https://assets.econsultancy.com/images/0008/1648/Sip_and_Wine_programme.JPG" alt="" width="780" height="533"></p> <p>Similarly, other brands aim to deliver value outside of what’s in the box.</p> <p>Beauty subscription services in particular tend to use <a href="https://econsultancy.com/blog/68205-how-three-beauty-ecommerce-sites-integrate-editorial-content/" target="_blank">online editorial content to engage customers</a>, using expert advice and tips and tricks to help them get the most out of the products, as well as extra content based on general beauty.</p> <p><img src="https://assets.econsultancy.com/images/0008/1649/Glossybox_blog.JPG" alt="" width="750" height="677"></p> <h3>In conclusion...</h3> <p>While attracting new customers is an important part of the subscription box marketing model, it's certainly not the key to success.</p> <p>Rather, it is vital that brands think about long-term strategy.</p> <p>By delivering extra incentives and increased value for loyal customers, cancelling will hopefully be the last thing on their minds.</p> tag:www.econsultancy.com,2008:BlogPost/68532 2016-11-22T13:30:00+00:00 2016-11-22T13:30:00+00:00 The case for chatbots being the new apps - notes from #WebSummit2016 Seán Donnelly <p>I counted 23 bot related companies exhibiting at the early stage (Alpha) area at Web Summit last week.</p> <p>These included bots for different kinds of services as well as bot building platforms. A year ago, this area might have been taken up by start-ups working on mobile apps.</p> <p>Is this a clear sign that bots are about to move beyond the nascent stage? Perhaps.  </p> <p><img src="https://assets.econsultancy.com/images/resized/0008/1501/web_summit_bot_start_ups-blog-flyer.png" alt="Start Ups exhibiting at Web Summit 2016" width="470" height="364"></p> <h3>What is a bot?</h3> <p>We’re actually a lot more familiar with bots than we might realise. Think of Apple’s Siri or Microsoft Cortana. They’ve been around for a while but until recently, haven’t really gained traction for various reasons.</p> <p>Search engines may be considered as a type of bot. A user types in a command or request in the form of a search query and the search engine returns a number of results based on that query. </p> <p>Or let’s go even further, remember Microsoft’s paper clip virtual assistant? That was discontinued years ago but bots have been taking off again recently as advances in machine learning and artificial intelligence make them more accessible and versatile than before.</p> <p>In terms of the more recent bot experiences, brands are starting to use them for more personal, proactive and streamlined interactions with people. In this sense, a bot is just a new type of user interface.</p> <p>According to Ted Livingston, CEO and founder of messaging app Kik, speaking on the digital marketing stage at Web Summit, "people think bots are about chatting. They're just a better way to deliver software. It's just a user interface.”</p> <p>Chatbots are just automated computer programs that can simulate conversation with people to perform tasks or answer questions. </p> <h3>How sophisticated are bots?</h3> <p>There is a scale of complexity when it comes to bots. At the most sophisticated level, a bot is an artificially intelligent creation capable of understanding complex interactions.</p> <p>At the lower end of the spectrum, a bot is just a simple interface that can respond to a limited number of pre-programmed commands.</p> <p>For an idea of how basic bots can be, there is a plethora of basic bot-building platforms online. I created Seanbot at robots.me. It’s not going to do my work for me anytime soon. </p> <p>As basic as some bots may seem, Kik’s Livingston says “calling bots basic today is a bit like calling websites basic 20 years ago”. We’re going to see bot sophistication increase far more quickly than we did for website functionality. </p> <h3>Why are bots getting popular so quickly?</h3> <p>According to Ted Livingston, one answer might be the growth and use of messaging platforms which is providing some of the infrastructure for delivering bot interfaces.</p> <p>Back in April 2016, <a href="https://econsultancy.com/blog/67799-facebook-s-f8-updates-mark-shift-from-screens-to-experiences/">Facebook opened up its Messenger platform</a> to developers at its F8 developer conference. That means that brands that want to reach people on mobile can build bots to share weather updates, order pizza, confirm flight reservations or send receipts after a purchase. </p> <p>For example, Mark Zuckerberg presented the use case of ordering flowers by chatting with the 1-800-Flowers.com bot, ironically bypassing dialling the telephone. As of July 2016, there were more than 11,000 bots on the Facebook Messenger platform. </p> <p>Also in April, Kik launched its own bot store, which according to Livingston, has already attracted more than 20,000 bots.</p> <p>He told users at Web Summit that in China there are more bots launched on TenCent’s WeChat every day than websites added to the Internet. In other words, according to Livingston, “WeChat is the Internet” in China. </p> <p><em>Kik bot store</em></p> <p><img src="https://assets.econsultancy.com/images/resized/0008/1502/kik_bot_store-blog-flyer.png" alt="Kik Bot Shop Interface" width="470" height="193"></p> <p>Google revealed its chatbot strategy in May. Unlike M, the virtual assistant in Facebook’s Messenger, the Google Assistant will respond to voice queries and not just text input.</p> <p>Microsoft also has its own open source bot builder. Unlike Messenger and Kik bots, these bots can be deployed on other platforms.</p> <p>Amazon has also opened up its bot building platform, Echo, to developers since 2015.</p> <h3>What do bots mean for the future of apps?</h3> <p>Chatbots can be delivered via website interfaces for managing basic customer service queries.</p> <p>There could be a time though when instead of visiting an ecommerce site, we simply message the relevant stores bot on Facebook Messenger which would ask us what we are looking for and we simply tell it. </p> <p>If we think about mobile apps, there are a number of reasons why bots may in fact be the new app.</p> <h3>Why might bots succeed apps?</h3> <p><strong>1. Difficulty getting cut through on mobile app stores</strong></p> <p>If we examine mobile, according to Livingston, three quarters of American smartphone users download zero apps per month. Also, research suggests that users only use 3–4 apps on a regular basis. </p> <p>Getting cut through in the app store and then retaining users is also incredibly difficult. Bots on the other hand are available via some of the most popular messaging apps and so can provide a new way to manage frictionless interactions with consumers. </p> <p>Livingston says that if you can create a great bot experience, that experience can spread virally.</p> <p>"The problem with the app store is that they (apps) can't go viral. The top 50 apps take up the majority of downloads. Bots make it easy for experiences to go viral via mentions which allow bots to be put into conversations”.</p> <p>He gave the example of a fun chatbot Kik built called Roll that went from 0 to half a million users in 30 days.</p> <p>95% of the user base came by being shared peer to peer. It now has 1 million users.</p> <p><strong>2. Ubiquity of messaging apps</strong></p> <p>Considering the incredible growth in the number of bots available via Messenger, Kik, WeChat and other platforms, then according to Livingston "if you are a developer at this point and you are still building an app, you are crazy”. </p> <ul> <li>WhatsApp, owned by Facebook, is the most popular messenger app in the world with 1bn monthly active users (Source: Statista).  </li> <li>Facebook Messenger takes second place with over 900m monthly active users (MAUs). This number has been consistently growing since 2014 when it had 200m MAUs.</li> <li>Chinese company Tencent’s instant messenger QQ isn’t far behind with about 880 MAUs (ChinaInternetWatch).</li> <li>Tencent’s WeChat is also on the list with 806 million monthly active users as of October 2016 (Statista). </li> </ul> <p>Further, the number of mobile messaging app users is forecast to nearly double between 2014 and 2019 (Statista). That means a projected total of 2.19bn people using mobile messaging apps by 2019.</p> <p><img src="https://assets.econsultancy.com/images/resized/0008/1503/900_million_people_using_facebook_messenger-blog-flyer.png" alt="" width="470" height="260"></p> <p><strong>3. There is less friction using a bot than installing an app</strong></p> <p>To make user of a bot, a user just needs to search for the bot within their preferred messaging app and start “chatting”. Because you are interacting via your installed messaging app, the bot will have access to your identity.</p> <p>This contrasts with searching for an app, installing and creating an account. This may be problematic if you are outside a wifi zone and don’t want to use data to download the app.</p> <p>I tried using 1800 Flowers this morning. While I didn’t actually order anything, connecting with the bot and starting the interaction was quite easy.  </p> <p><img src="https://assets.econsultancy.com/images/resized/0008/1505/1800_flowers-blog-flyer.png" alt="" width="470" height="275"></p> <p><strong>4. Bots may be better options for businesses that don’t have an immediate business case for an app</strong></p> <p>Users can add a bot to their contact list rather than downloading an app.</p> <p>What this means is that small businesses or companies that don’t have a clear use case for downloading and keeping an app on your phone may benefit from a bot instead.  </p> <p>Think of hotels or your local hairdresser / barber. To spend the time, effort and money to build an app for these services wouldn’t be worth it but there may be a long tail in having them in your contact list to make bookings etc. </p> <p><strong>5. Bots don't use up valuable memory on users smartphones.</strong></p> <p>Enough said.</p> <h3>Use case - how KLM is starting to use bots for customer service</h3> <p>At Econsultancy’s Festival of Marketing 2016, KLM’s Social Media Manager Karlijn Vogel-Meijer discussed the airline’s approach to customer service via social media. </p> <p>KLM has been a poster child for using social media as a customer service tool. Karlijn told FoM attendees that KLM has 235 agents dealing with social mentions around the world, 24/7.  </p> <p>To put it into context, the KLM team responds to 15,000 social mentions per week in 12 different languages.</p> <p>They used to have a 60 minute promised response time but in reality, most customer don’t want to wait that long. These interactions are managed manually but the volume of interactions is increasing year on year. </p> <p>For this reason, KLM is exploring AI and bots to help reduce the strain, whilst working to maintain a human feel.</p> <p>KLM added in a Facebook Messenger chatbot in March. Since its launch, it is receiving 5 questions per hour via Messenger. This number can increase to 13 in a peak hour.</p> <p><img src="https://assets.econsultancy.com/images/resized/0008/1504/klm_social_mentions-blog-flyer.jpg" alt="KLM’s Social Media Manager Karlijn Vogel-Meijer speaking at FoM 2016" width="470" height="368"> </p> <p>The brand is using Messenger for automated updates around checking in, potential delays and sending boarding passes. However Karlijn was clear that if a customer has a more complex question, a KLM agent will still get involved. </p> <p>Bots right now may not be in a position to interact in a personal way she says. In that sense, KLM’s social customer service strategy hasn’t changed. They’ve just added a layer of technology to support common requests.</p> <p>KLM is exploring adding more functions to Facebook Messenger and expanding its chatbot to other platforms like WhatsApp and WeChat. These are expected to roll out within the next year.</p> <h3>Learn more about bots </h3> <p>Econsultancy has published a number of posts and reports about bots and artificial intelligence in the last year. In particular, readers may find the following helpful: </p> <ul> <li><a href="https://econsultancy.com/blog/68388-how-klm-uses-bots-and-ai-in-human-social-customer-service/">How KLM uses bots and AI in ‘human’ social customer service</a></li> <li><a href="https://econsultancy.com/reports/marketing-in-the-age-of-artificial-intelligence/">Marketing in the Age of Artificial Intelligence</a></li> </ul> tag:www.econsultancy.com,2008:BlogPost/68539 2016-11-17T14:28:23+00:00 2016-11-17T14:28:23+00:00 How are disruptive brands redefining marketing? Nikki Gilliland <p>We’ve gathered insight from six executives from the <a href="https://econsultancy.com/reports/top-100-disruptive-brands-2016/" target="_blank">Top 100 Disruptive Brands</a> list, a report produced in association with Marketing Week.</p> <p>You can watch the full interviews in the video below – or read on for a summary of what they said.</p> <p><iframe src="https://player.vimeo.com/video/191140074" width="640" height="360"></iframe></p> <h3>Focusing on the right channel</h3> <p>While startups are typically small in terms of budget and scale, Justin Basini, the co-founder and CEO of Clear Score, explained how this doesn’t necessarily mean you have to put limitations on your marketing model. </p> <p>Or, that digital channels have to be the only way forward.</p> <blockquote> <p>What’s unique and different about the way we approach marketing at Clear Score is that we have focused from our earliest days on how we get to scale as quickly as possible.</p> <p>Ironically, we didn’t do any of the normal startup marketing that you might expect, like Facebook, PPC, Google.</p> <p>We went straight onto TV – and the reason we could do that was because we had a bunch of people around the table and we’d raised enough money to really go into the market hard.</p> </blockquote> <h3>Capitalising on word-of-mouth</h3> <p>Copa90 is a company that relies on the enthusiasm of its audience to further its own marketing. </p> <p>Building on word-of-mouth recommendations and online search interest, CTO James Kirkham described how it uses its own content as the biggest tool in its arsenal.</p> <blockquote> <p>So much of Copa90's marketing is built around our own shows. They are flagship pieces that fans look to find themselves - they have their own viewerships and become marketing properties in their own right. </p> </blockquote> <p>For Eren Ozagir, founder and CEO of Push Doctor, the unique nature of his company’s product creates a similarly unique approach to marketing.</p> <blockquote> <p>I know people think ‘marketing healthcare has been done for years and years’. </p> <p>Yes, as an insurance product, but not as a fully packaged digital experience. And so, there are very few people that have been pushing the boundaries on Facebook to directly acquire customers [in this way]. </p> </blockquote> <h3>Using personalisation and education</h3> <p>Many of the executives interviewed spoke about how their marketing models are based on delivering something of value.</p> <p>For Kirsty Emery, the co-founder of Unmade, this is creating promotional videos to help guide customers as well as raise awareness about what the company does.</p> <blockquote> <p>For us, because the customer is involved in every single area... we have to be able to talk to them and show them how to go along this process.</p> <p>A lot of what we do is very visual and dynamic, so we make a lot of videos to help our customers, so they can see how to use the site, where to click, what to do, etc. </p> </blockquote> <p>Similarly, Andy Hobsbawm, co-founder and CEO of Evrythng, focuses on tapping into people’s interest but <em>lack</em> of knowledge in the technology sector.</p> <blockquote> <p>The way we approach marketing is shaped a lot by the market itself, which is in a certain stage of evolution.</p> <p>So, because it’s emerging, and people’s understanding of the Internet of Things and the possibilities of smart products is changing all the time – part of what we do is rooted in education.</p> </blockquote> <h3>Investing wisely</h3> <p>Finally, Stephen Rapoport, founder of Pact, takes a much more measured approach.</p> <p>Focusing on performance marketing, he explains how having a detailed and comprehensive plan for investment is the key to the company’s growth. </p> <blockquote> <p>I know exactly what the return on investment of every pound I spend will be and over what period of time. </p> <p>That is incredibly powerful because it means we can make trading decisions in real time, about where our next marketing pound is spent, and exactly what we need to optimise for at that point in time – whether it is payback, ROI, top line growth. </p> <p>If you look at the coffee brands with who we are competing and we are a speck of dust in terms of size and budget and resource. All we have is nimbleness and insight.</p> </blockquote> tag:www.econsultancy.com,2008:BlogPost/68474 2016-11-16T15:36:11+00:00 2016-11-16T15:36:11+00:00 B2B digital marketing trends for 2017: Finally catching up with B2C? Arliss Coates <h4><strong>The before and after</strong></h4> <p>Content marketing is, as ever, on the minds of B2B digital marketers.</p> <p>However, our research shows a slightly changed picture from the B2B world of last year (and the three before, since Econsultancy began producing B2B Digital Trends reports in 2012) - customer experience is taking on a greater, and substantial, role in the B2B space.</p> <p>As readers of our past reports will know, B2B trails B2C pretty consistently in focus and market prioritization. In our latest report we discuss some ways to halt this trend, partly by looking to successful B2B marketers to identify winning strategies.</p> <h4><strong>Data</strong></h4> <p>It's not going away. In fact, almost a fifth of marketers believe that the most exciting change of the next five years will be in the direction of data-driven marketing that focuses on the individual.</p> <p>However, marketers lack confidence in their data analysis abilities.</p> <p>Majorities of B2B and B2C marketers are either neutral on the question of whether they have the analysts necessary to "make sense of our data," or they out-right disagree:</p> <p><img src="https://assets.econsultancy.com/images/0008/1543/analysts_chart.png" alt="" width="750" height="559"></p> <p>B2B and B2C respondents replied similarly when asked whether they had a good infrastructure in place to collect the data they need.</p> <h4><strong>Data handling capabilities are a problem</strong></h4> <p>Data handling is an issue that still dogs marketers. Strangely, many still don't believe that using data across online and offline channels will be of special importance in the years to come.</p> <p><img src="https://assets.econsultancy.com/images/0008/1542/data_graph.png" alt="" width="700" height="537"></p> <h4><strong>Brands need to catch up to their customers. Mobilize!</strong></h4> <p>It's become a tiresome trope that everything is going "mobile," but it's no less accurate for being a true blue marketing cliche.</p> <p>Problem is, brands aren't following. What's the hold up?</p> <p><img src="https://assets.econsultancy.com/images/0008/1541/marketing_priorities.png" alt="" width="700" height="529"></p> <p>For starters, brands still aren't prioritizing the move to mobile. and neither are they shy about saying so.</p> <p>Respondents were asked to rank five key digital marketing areas in order of importance for their organization in 2016. </p> <p>Mobile was one of these options. Figure 10 shows the breakdown for organizations and how they responded with regard to mobile.</p> <p>For 61% of B2B respondents, mobile doesn’t crack the top three priorities for 2016.</p> <h4><strong>As always...</strong></h4> <p>Modern marketing is the story of learning how to sell in the face of changing realities.</p> <p>The customers' world is changing faster than brands can adapt, and marketers commonly site a shortage of skills as being of the top barrier to optimizing the digital customer experience.</p> <p>Inside this year's B2B Digital Trends report are a few insights that will help marketers improve brand performance in this area. Click <a title="B2B Digital Trends" href="https://econsultancy.com/reports/b2b-digital-trends-2016-2017/">here</a> to check it out.</p> tag:www.econsultancy.com,2008:BlogPost/68489 2016-11-10T14:29:00+00:00 2016-11-10T14:29:00+00:00 Five ways financial services companies are adapting to the new digital age Juliet Stott <p>At a recent event, A New Age of Digital Finance, ORM managing director Keith Nation said: </p> <blockquote> <p>The millennials are expecting to interact with banks in the same way they do with Uber. The younger generation are time poor and they expect a world of hyper convenience; and they want a frictionless digital relationship with their bank too.</p> </blockquote> <p>But <a href="https://econsultancy.com/training/digital-transformation/">digital transformation</a> in this sector is slow to happen. Legacy systems, disparate data silos, internal resistance to change, lack of digital expertise, and tight governmental regulations are just some of the problems financial service (FS) businesses are trying to solve to meet consumer demand.</p> <p>In the meantime, challenger banks and startup fintech companies are offering new products and services that are attractive to the new generation of digital-first consumers.</p> <p>At the event, guest speakers from the UK’s biggest names in retail banking – including Barclays and TSB, along with wealth management company Allianz Global Investors – addressed their digital challenges and presented ways they’re overcoming these issues. </p> <p>Here is what was said:</p> <h4>1. Seeking out the single customer view</h4> <p>A digital consolidated data-set, which can be used across all channels to provide customers with a seamless digital experience, is the <em>“nirvana”</em> said Julian Brewer, Head of Digital Sales and Products at TSB.</p> <p>But many banks, including TSB, have a long way to go; legacy systems, ownership rights over proprietary data and fragmented data sources are just some of the many stumbling blocks that prevent <a href="https://econsultancy.com/blog/65425-what-is-the-single-customer-view-and-why-do-you-need-it/">the single customer view</a> becoming a reality.</p> <p>Brewer said many of the banks are looking to find ways of bringing data together within a DMP; however this is a complex and costly endeavour.</p> <p>TSB uses a tool called Tealium Audience Stream to create a CMP (Customer Marketing Platform) which pulls the limited data sources available to the bank together into a single view, and delivers many of the benefits of a more traditional DMP.</p> <p>“From this, we’re able to use our first-party data to create real-time audience segments and tailor our digital onsite and offsite marketing to great effect, and make this experience more relevant to our customers,” he said.</p> <h4>2. Reclaiming digital content</h4> <p>In recent years, many asset manager marketers have fallen into the trap of giving their content to other sites, either for free (to aggregators) or have paid other publications (such as The FT or CityWire) to publish their content, in the belief that it will bring them closer to their clients and prospects.</p> <p>This has been a mistake, as these aggregators and publishers have ended up owning the relationships with the asset manager’s customers, and not shared any information on how the content was consumed.</p> <p>Tom Hughes, Head of Marketing at Allianz Global Investors, said: “Marketers need to understand the value of their own website and the insight it provides.”</p> <p>He said marketers need a change of mindset, as websites should no longer be viewed as just “shop windows.”</p> <p>“Websites need to provide a utility for clients; they need to have content that’s useful for them so they are are encouraged to return.</p> <p>"Every click, and every interaction that happens your website, is valuable. If you can work out the causation between this activity and the sale of a product, that’s gold,” said Hughes.</p> <h4>3. Taking control of your CRM</h4> <p>The advancement of digital has come with an abundance of data; and more pressure for marketers to answer questions from the C-suite such as:</p> <ul> <li>What’s the ROI on our spend?</li> <li>Who’s been on the website? What did they click on?</li> <li>Who opened that email? Where did they open it? From what device?</li> </ul> <p>In the past, when marketing was a linear process and the CRM was used to manage sales funnels, marketers didn’t get involved in data. But that’s all changed.</p> <p>CRM is now the hub of information and the crux of the relationship between marketing and sales.</p> <p>Jason Lark, MD at Celerity, said: “If you don’t have a hold on your CRM and how it connects with all the platforms you’re building, and if you don’t know how each communication is performing, then you’re going to fail.</p> <p>"You need a good website, with high performing content where you can capture data. [It’ll] underpin your relationship with your customers and your sales team.”</p> <h4>4. Putting the customer at the heart of the digital transformation</h4> <p>Barclays Bank has refocussed its business model and says it is putting its customers at the heart of everything it does.</p> <p>“We want to help our customers hit their financial goals and achievements, and we’re going to use our transactional level data to do this,” said Sharukh Naqvi, Barclays Bank's VP of analytics and personalisation.</p> <p>Barclays is not the only company realigning its business model to put the customer at the core. Disney has invested heavily in the customer experience.</p> <p>It’s created a piece of wearable tech, a wristband called Magic Band, which enables its customers to make purchases without a credit card or cash, gain entry to its parks and resorts, book Fast Passes, make dinner reservations and receive personalised offers.</p> <p>As Brian Solis, leading expert on experiential business models, said in his latest book:</p> <blockquote> <p>In order to be competitive, brands must get better not only at understanding and satisfying customers’ wants and needs but at anticipating them, even before customers know what they want and need.</p> <p>This proactive experience is quickly becoming the new standard.</p> </blockquote> <h4>5. Catering for more sophisticated audiences</h4> <p>The millennial generation are internet natives. They are mobile-first and learn, work, shop and socialise online.</p> <p>They expect speedy, efficient customer service across all channels, from any institution they choose to engage with, day or night. If financial services brands can’t provide great digital service, said Andy Farmer Executive Strategy Director at ORM, then these consumers will go elsewhere.</p> <p>“The rise of fintech companies like Funding Circle, Nutmeg and eToro is no surprise; they’re very attractive to digitally-able younger consumers. These brands aren’t taking huge marketshare at the moment, but they are nibbling away at the edges.”  </p> <p>Traditional banks are reacting to this change in a number of ways, such as creating “<a href="https://econsultancy.com/blog/68356-what-is-an-innovation-lab-and-how-do-they-work/">innovation labs</a>” within their businesses.</p> <p>And, in some cases, directly investing in fintech companies outright; all to keep pace with technology and remain competitive.</p> <p><em>For more on this topic, see:</em></p> <ul> <li><a href="https://econsultancy.com/reports/digital-transformation-in-the-financial-services-sector-2016/"><em>Digital Transformation in the Financial Services Sector</em></a></li> <li><a href="https://econsultancy.com/reports/digital-trends-in-the-financial-services-and-insurance-sector-2016/"><em>Digital Trends in the Financial Services and Insurance Sector</em></a></li> <li><a href="https://econsultancy.com/blog/67202-what-s-the-future-for-big-banks-in-a-fintech-world/"><em>What's the future for big banks in a FinTech world?</em></a></li> </ul> tag:www.econsultancy.com,2008:BlogPost/68356 2016-11-02T14:58:54+00:00 2016-11-02T14:58:54+00:00 What is an innovation lab and how do they work? Ben Davis <p>But what exactly is an innovation lab, and how do they work?</p> <h3>How to define an innovation lab?</h3> <p>The drawing below shows there are many ways to encourage innovation within a business.</p> <p>Some of these involve a strategic and goal-focused unit, perhaps focused on a specific area like big data, tasked with creating anything from a new product or service to a new technology or business model.</p> <p>Other innovation initiatives may not be physically co-located, they can be as radical as Google's model of 20% 'free' time for workers to innovate, or simply involve setting up a group to collaborate with other industries, startups, or academia.</p> <p><img src="https://assets.econsultancy.com/images/0007/9791/defining_innovation.jpg" alt="innovation labs" width="615"></p> <p><em>Image via <a href="http://eu.wiley.com/WileyCDA/WileyTitle/productCd-111921887X.html">The Fintech Book, Wiley</a></em></p> <h3>The challenges of setting up an innovation lab</h3> <p>Andra Sonea, systems architect, <a href="https://www.linkedin.com/pulse/fintechbook-so-you-think-innovation-lab-answer-andra-sonea?trk=prof-post">eloquently sums up</a> some of the many questions that companies need to ask themselves in the course of creating an innovation lab.</p> <p>I'll paraphrase slightly as follows:</p> <ul> <li>What roles should be filled?</li> <li>What types of people make the best innovators?</li> <li>Should you recruit from inside the company or look for fresh perspectives?</li> <li>Do you define a governance framework from the beginning or let it evolve?</li> <li>What projects will you prioritise?</li> <li>How do you integrate with the rest of the organisation and not be perceived as outlaws?</li> <li>Do you need dedicated infrastructure?</li> <li>How can ideas be tested softly? Who are your actual clients?</li> </ul> <h3>The aims of the innovation lab</h3> <p>Whilst the goal of any innovation lab is ultimately to create new revenue streams or bolster existing ones by improving productivity or speed, there is much more to consider.</p> <p>Many of the methods of encouraging innovation represent both means and an end. For example, a new culture of working may be beneficial for productivity, but in its own right can make for a happier workforce.</p> <p>So, what are some of the common aims of the innovation lab?</p> <p><strong>Incubating a new culture</strong></p> <p>Many think of culture as the wishy washy side of both innovation and <a href="https://econsultancy.com/training/digital-transformation/">digital transformation</a>.</p> <p>Fixing <a href="https://en.wikipedia.org/wiki/Broken_windows_theory">broken windows</a> (the idea of new office decor, relaxed dress code and seating, and Macs for all) can often be seen as an empty gesture - snacks can only make a company so much more enjoyable to work at.</p> <p>However, these changes are an important step when combined with a focus on new ways of working - customer centric, data driven, tech-enabled.</p> <p>Communication between a lab and other teams, often involving a cross-functional team, is important in instigating a 'test, learn, iterate' culture.</p> <p>One of the challenges of the lab, as Sean Cornwell of Travelex states (though referring to broader digital transformation), is avoiding the cool kids in the corner syndrome.</p> <p>Incubating culture is a fine balance and further down the line may ultimately hinge on hiring and firing.</p> <p><strong>Ideation</strong></p> <p>Fairly obviously, this is a large part of what innovation labs promise. That can involve hackathons or day-long collaborative events.</p> <p>Innovation labs may work on proposals submitted from across the business, even involving a competition element to reward teams or employees.</p> <p>At the lighter end of the lab scale, hack spaces or CX demos can be created merely to demonstrate the latest tech in a particular industry and encourage staff or even clients to think big.</p> <p><strong>Talent replenishment</strong></p> <p>A catch-22 can occur at relatively slow-moving companies. These companies must attract talented staff with digital skillsets in order to change the company, but these candidates may not want to work for companies that may be perceived as boring or old fashioned.</p> <p>So, the lab can be created as an attractive base for new employees. Ryanair provides a good case study here, <a href="https://econsultancy.com/blog/65141-what-does-ryanair-labs-reveal-about-company-culture/">showcasing all the benefits of working for its lab</a> on a dedicated microsite.</p> <p>Salary, empowerment, startup culture and often a new location (such as a metropolitan office rather than the out-of-town HQ) are all used as a draw.</p> <p><img src="https://assets.econsultancy.com/images/resized/0005/0176/labs-blog-full.png" alt="ryanair labs" width="615" height="238"></p> <p><strong>Open data</strong></p> <p>This isn't always an aim of innovation labs, but opening up data for third parties to innovate can be a good method of early product development in certain industries.</p> <p>Nesta, the British innovation charity, runs the Open Data Challenge with the Open Data Institute, which has spawned new digital products and boasts a five to tenfold ROI.</p> <p>One such product built on open data is <a href="http://www.movemakerapp.co.uk/">Movemaker</a>, an 'app for house hunters, which helps people living in social housing swap their properties'.</p> <p><strong>In-housing</strong></p> <p>Part of investment in a lab can be a focus on developing in-house capabilties.</p> <p>Rather than looking to agencies to develop new media, for example, companies can bring competency in house.</p> <p><strong>Emphasising long term revenue</strong></p> <p>The lab can be a form of insulation against short term accounting that some see as the enemy of innovation.</p> <p>Though product development can be fast through agile methods, creating new products or business models doesn't always lead to an immediate return. The lab is an environment where long-term thinking can be encouraged.</p> <p>This requires what <a href="https://econsultancy.com/blog/67099-hive-a-startup-culture-in-a-corporate-behemoth/">Tom Guy of Hive</a> (British Gas's home internet-of-things spinoff) calls 'air cover' from stakeholders.</p> <p>Time and money granted from senior members of the business, managing upwards.</p> <p><strong>New businesses</strong></p> <p>Investing in an accelerator allows companies to give money, facilities and training to a range of startups and have a stake in their success, either aiming for integration in the long term, or a portfolio of successful tagential businesses.</p> <p>Axel Springer's Plug and Play accelerator in Berlin is a good example, and includes other partners such as Deutsche Bank. </p> <h3>So, innovation labs should be much more than PR</h3> <p>In summary, though labs can seem like PR on the surface, they need to stand for much more in order to change big businesses.</p> tag:www.econsultancy.com,2008:BlogPost/68431 2016-10-28T14:06:05+01:00 2016-10-28T14:06:05+01:00 How to combine attribution and segmentation data to achieve marketing success James Collins <p>Ultimately, being shrewd about how you segment your marketing data gives you the opportunity to become more effective at targeting the right people at the right time.</p> <p>Here, I share just some of the ways you can use attribution and segmentation to unlock even more value from your marketing efforts.</p> <p><strong><img src="https://assets.econsultancy.com/images/0008/0493/different-customer-groups-shopping-online.jpg" alt="Different customers shopping online" width="800" height="500"></strong></p> <h3>Understand the journeys of converting <em>and </em>non-converting users</h3> <p>As the name suggests, the data captured by traditional CRM systems is based on <strong>customers</strong>: On people who have completed a conversion.</p> <p>However, there will always be far more people browsing your products and services only to walk away.</p> <p>It’s here, in these non-converting journeys, that marketers are able to uncover where their efforts are falling flat.</p> <p>Effective user journey analysis and attributed reporting provides you with not only an understanding of the behaviour of people who buy from you but also those people who come to your site and do not purchase.</p> <p>Armed with this information, you can identify the marketing channels that aren’t helping attract or convert your chosen customer segments well enough.</p> <p>You can then experiment with cutting back spend in those areas and reallocating budget to other more effective channels.</p> <h3>Discover what activities attract new customers</h3> <p>One of the most common uses of segmentation is to provide a <strong>distinction between new and existing customers.</strong></p> <p>Segmentation allows you to distinguish between these two types of customers, while attributed reporting and user journey analysis helps you understand their typical behaviours.</p> <p>This combination then gives you the power to experiment and discover which channels are most effective at attracting each type of customer.</p> <p>How might user behaviour differ between these two segments? You might expect that new customers are exposed to your brand through channels like display and non-navigational search.</p> <p>On the other hand, existing customers might visit your website more often directly, through <a href="https://econsultancy.com/reports/email-census/">email marketing</a>, or a branded, more specific, search.</p> <p>Once you have the data to prove (or disprove) these assumptions, you’ll have an idea of where to focus your marketing efforts.</p> <p>For example, if you want to attract more new customers, you’ll know which channels, and which combination of channels, to test first.</p> <h3>Reach your different customer groups in the most effective ways</h3> <p>Effective segmentation should also allow you to <strong>determine between different groups of customers based on their demographic or behavioural characteristics.</strong></p> <p>Analysing your attributed reporting data by customer segment allows you to formulate and test marketing campaigns specific to your different customer groups, rather than put out an ineffective ‘one-size-fits-all’ campaign and hope for the best.</p> <p>To give a simple example to put this into context, say you’re a travel company and you’ve identified two of your common customer types:</p> <p><strong>Active Retirees</strong></p> <ul> <li> <strong>Description:</strong> older holidaymakers who have the free time and money to enjoy travel.</li> <li> <strong>Relevant products:</strong> cruises, package holidays, tours.</li> <li> <strong>User journey:</strong> don’t regularly use social media, conduct a lot of online research before making final choice, often complete purchase offline.</li> <li> <strong>Effective marketing campaigns: </strong> display advertising, affiliate partnerships, email marketing campaigns well in advance of peak booking time offering in-store discount.</li> </ul> <p><strong>Affluent Singles</strong></p> <ul> <li> <strong>Description: </strong> spontaneous decision makers with money to burn.</li> <li> <strong>Relevant products: </strong> last minute group holiday deals.</li> <li> <strong>User journey: </strong> impulse purchasers with short lead time, engage with social media regularly.</li> <li> <strong>Effective marketing campaigns: </strong> targeted social media advertising offering limited-time group discount.</li> </ul> <p>In this example, ‘Active Retirees’ tend to have more touchpoints in their path to purchase than ‘Affluent Singles’.</p> <p>Given this data, you can then try targeting your Active Retirees well in advance with an in-store discount across the various platforms that work for them.</p> <p>At the same time, you can test cutting back on the number of different touchpoints used to engage with Affluent Singles, who convert last-minute regardless, to see if you get better results.</p> <h3>Learn how to market to customers with high lifetime value</h3> <p>Segmentation can also allow you to <strong>group customers based on their purchasing habits.</strong></p> <p>For example, one-time purchasers, occasional purchasers, and regular purchasers with a high lifetime value.</p> <p>Using the Active Retirees example again, let’s say that your attributed reporting shows that a retargeting campaign had only a minor impact on these customers’ decisions to purchase their first holiday.</p> <p>In this way, it doesn’t appear to be a profitable a campaign.</p> <p>However, when you analyse the attributed data over an extended period of time, you may find that these same customers come back to make additional purchases further down the line, making them fall into your high lifetime value segment.</p> <p>You may also find that they return using what we might call ‘free’ channels (<a href="https://econsultancy.com/training/courses/topics/search-marketing/">SEO</a>, email, or direct), interacting with fewer touchpoints each time.</p> <p>When judging the value of the initial retargeting campaign across the entire lifetime value of these customers, the associated ROI becomes much greater.</p> <p>Only by using segmentation and attribution in combination can you gain this insight and judge the performance of your campaigns effectively.</p> <p>This then gives you the power to experiment and get better at targeting the right people in the right ways.</p> <h3>Use attribution to unlock the value that’s right under your nose</h3> <p>By <a href="https://econsultancy.com/blog/66996-the-three-stages-of-attribution-that-are-crucial-to-success/" target="_blank">harnessing the power of attributed reporting data</a>, marketers can better understand the intricacies of the true value of their efforts.</p> <p>By segmenting that data in astute ways, marketers are given the opportunity to test, evaluate, and ultimately get better at targeting their most valuable customers.</p> <p>When talking about attribution, the conversation is immediately drawn into the algorithm, with little regard as to the additional benefits it can bring to all of your marketing channels.</p> <p>The advice I’ve provided here hopefully demonstrates that using the data to enhance insight presents a huge opportunity for marketers.</p> tag:www.econsultancy.com,2008:Report/4287 2016-10-27T16:33:00+01:00 2016-10-27T16:33:00+01:00 B2B Digital Trends 2016 - 2017 <p>In the tradition of our last four annual reports on the digital landscape in B2B, the <strong>B2B Digital Trends 2016-2017</strong> report notes the continued importance of content marketing, along with the growing role of customer experience (CX) in the B2B space.</p> <p>As stated, B2B continues to lag behind B2C. Naturally, talented B2B marketers are looking to their B2C counterparts to inform the next move; inside is a description of these priorities, along with an overview of what has changed marketing-side in the time elapsed since last year's survey. Find out where B2C's priorities are, so that B2B might catch up and eventually, overtake.</p> <p>Further explore Econsultancy's B2B/B2C comparisons in personalization and customer experience, along with B2B's current and most pressing obstacles to customer centricity. </p> <p>As marketers in a highly disruptive age, it's no longer enough to anticipate the next step; take advantage of the insight provided by more than 1,000 professional respondents in the fast-changing world of digital B2B.</p> tag:www.econsultancy.com,2008:BlogPost/68440 2016-10-25T10:27:02+01:00 2016-10-25T10:27:02+01:00 Jaguar Land Rover launches digital store in London: Is it any good? Nikki Gilliland <p>I recently paid it a visit to find out more.</p> <h3>Fashion-inspired design</h3> <p>Jaguar Land Rover is not the first automotive brand to experiment with a digital retail store.</p> <p>Last year, Hyundai opened a similar showroom in Kent’s Bluewater.</p> <p>Aiming to create better brand engagement rather than straightforward sales – it had some surprising results.</p> <p>The Hyundai store saw 60% of visiting customers completing their purchase online and 54% of buyers were women. </p> <p>Jaguar Land Rover is aiming to replicate this success – ramping up efforts to engage Westfield’s typically younger consumers.</p> <p><img src="https://assets.econsultancy.com/images/0008/0619/jaguar_land_rover.JPG" alt="" width="780" height="585"></p> <p>With its sleek and airy design, the store fits in well with neighbouring luxury brands like Mulberry and Hugo Boss.</p> <p>The deliberately open-plan nature of the entrance is designed to entice passers-by, and is a good reflection of the general changing habits of car consumers. </p> <p>Now, it’s no longer about visiting a car dealership or poring over brochures for hours on end.</p> <p>Automotive brands like Jaguar Land Rover want to create an experience akin to shopping for luxury fashion or an item of technology, hence the store's location near the likes of Apple and Armani.</p> <p>The exposed store-front is certainly enticing.</p> <p>I’m not the type of person who is particularly interested in cars (disclaimer: I can’t actually drive) – but even I could be tempted to stroll in for a look round.</p> <p><img src="https://assets.econsultancy.com/images/0008/0618/IMG_3419.JPG" alt="" width="767" height="576"></p> <h3>Click-to-buy technology</h3> <p>The store itself is designed to complement the brand’s new click-to-buy website.  </p> <p>The idea is that consumers can visit in person to browse and view the display models, before either choosing to complete the purchase in-store (via one of the many tablet screens dotted around) or at home online.</p> <p>I spoke to one of the store’s so-called ‘Angels’ who guided me through the online process.</p> <p>Apparently, the rather grandiose title reflects their intent to help and offer information – not sell.</p> <p>The site itself is impressive, though my initial feeling was that it could potentially prove a little overwhelming.</p> <p>Allowing consumers to do everything from arrange a test drive to customise and arrange a trade-in – there’s a hell of a lot to take in. </p> <p><img src="https://assets.econsultancy.com/images/0008/0620/Jaguar_Land_Rover_online.JPG" alt="" width="780" height="437"></p> <p>I questioned whether people will actually have the confidence to complete such a large purchase online, however my ‘Angel’ assured me that the process is incredibly intuitive and straightforward.</p> <p>That also appears to be the main aim of the store, whereby a relaxed and laid back environment encourages consumers to learn about the cars at their own pace.</p> <p><img src="https://assets.econsultancy.com/images/0008/0622/store_interior.JPG" alt="" width="780" height="585"></p> <p>I certainly felt relaxed during my visit.</p> <p>There’s no pressure to show any intent to purchase - employees are more than happy to take a hands-off approach, leaving you to look around before asking whether or not you need any help.</p> <p>Again, this is reflective of the accessible nature of the store, created so that consumers don’t feel coerced into actually buying.</p> <h3>High-end experience</h3> <p>Alongside the tech, there are some nice additional touches in-store.</p> <p>As well as allowing users to choose car specifications online, the samples are showcased on the walls.</p> <p><img src="https://assets.econsultancy.com/images/0008/0621/store_screens.JPG" alt="" width="723" height="542"></p> <p>Likewise, visitors can be taken through various examples of interiors and colour choices, and large screens showcase the cars' features throughout.</p> <p><img src="https://assets.econsultancy.com/images/0008/0624/IMG_3427.JPG" alt="" width="500" height="666"></p> <p>It is a shame there aren’t more tangible features like this.</p> <p>Granted, the whole point of Jaguar's store is to complement the website.</p> <p>However, with many consumers desiring a physical experience - <a href="https://econsultancy.com/blog/68073-how-marketers-can-use-new-tech-to-deliver-meaningful-brand-experiences/" target="_blank">as well as a meaningful one</a> – it's a little disappointing that the digital elements are still built around the sale.</p> <p>We’ve already seen the likes of <a href="https://econsultancy.com/blog/67877-how-automotive-brands-are-blurring-the-lines-between-digital-reality/" target="_blank">Audi and Toyota experiment with immersive technology</a> like VR and AR. </p> <p>With such a large and prominent retail space, it seems a shame that Jaguar Land Rover hasn't grabbed the opportunity to do so too.</p> <p>While it's a great example of how to make car buying more accessible, a few additional touches could make it a more memorable experience - one of the most vital factors for increasing brand engagement.</p>